What Do You Think Of Men'S King "Hai Lan'S Home" Selling Women'S Clothing?

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Hai Lan's home is selling women's clothing.

Recently, in an internal meeting with securities dealers, Hai Lan's family mentioned the strategic layout of the future, taking into account the bottleneck problem of single category, it will start to set foot in women's clothing.

But Hai Lan's home did not give specific detailed plans and timetables.

"The business mode of Hai Lan's home is not exclusive at the moment. More local men's clothing brands or other category brands are imitating and following up. They also have a sense of urgency for the Hai Lan family and have a strong desire to change."

Shanghai Liang habitat Brand Management Co., Ltd. General Manager, senior clothing expert Cheng Weixiong said.

Facing the factors such as the impact of electricity supplier and the homogenization of commodities, the days of traditional clothing enterprises are becoming increasingly difficult.

In 2012 and 2013, when sales revenue growth was weak, Hai Lan's family began to move closer to the young people. Compared to the previous major male customers, the fashion style of Hai Lan home has reached 50% of the proportion since 2015.

In addition to younger products, the rapid expansion of storefront is also a pformation strategy of Hai Lan's home.

In terms of the number of stores, Hai Lan's home has grown from 1389 in 2010 to 4225 in the first quarter of 2016.

The reason for this is that Hai Lan's home has adopted a similar business model for franchisees, that is, franchisees only need to bear the risk of rent and daily operating expenses, and the products that can not be sold can be returned to headquarters.

Because franchisees do not participate in the management, they do not have to bear the risk of unsalable merchandise, which is also an important factor for Hai Lan's home to join.

Xue Danqing, a securities affairs representative, revealed that at present, Hai Lan's new shop is usually profitable in the year 80%.

According to his disclosure, Hai Lan's home has accelerated the pace of starting shop this year, and plans to add 700 stores a year.

In addition, when the upstream suppliers purchase, Hai Lan's home will not pay the full amount.

Before 2014, Hai Lan's home would pay 30% of the supplier's purchases, and then the figure was reduced to 25%. After the two quarter of sale, if the product had not yet been sold, Hai Lan's home had the right to return the unsalable goods to the supplier.

In this way, Hai Lan's home shifted the bulk of the biggest retail sales risk to the original supplier, and played a role of OEM and upstream and downstream channels.

The effect of pformation is reflected in the performance report.

In 2014 ~2015, Hai Lan's home revenue reached 12 billion 338 million yuan and 15 billion 830 million yuan respectively, and the net profit attributable to parent company owners was 2 billion 375 million yuan and 2 billion 953 million yuan respectively.

Many industry insiders said that the pformation of Hai Lan home has been effective, mainly because the sales link takes the mode of separation of ownership and management rights to control the terminal retail channels. All the franchisees use the national ERP system in a unified way, so that they can grasp and analyze the sales situation of the products in various stores nationwide, so that they can react quickly to the replenishment and shipment of the franchised stores. Effective cost control brings about a fall in the price of the clothing sales and stimulates the sales volume to increase substantially.

Although the shop is running smoothly, there are hidden dangers.

Yang Chen, an investment analyst at Wan Delong, pointed out that the cost of franchisees in Hai Lan's home mainly depends on the capital input from the franchisee, and the risk it takes on the expansion cost is relatively small. However, if the franchise's profitability decreases or even losses, it will release a negative signal that affects potential investors, so that the expansion of Hai Lan's home will be blocked.

Cheng Weixiong said: "the first and second largest shops with high rent are not big businesses and high rents, and businesses are doing well. The size is bigger and the suppliers are not growing bigger. The scale of the purchase of the brands themselves is bigger and bigger.

Cheng Weixiong, for example, has a brand named "obedient" under the banner of Hai Lan. In fact, it is used by the group to clean up inventory. The number of stores is increasing.

Taking into account the overall downturn in the men's wear market and the fact that the products are too single, Hai Lan's family, which has undergone rapid development, intends to enter the women's clothing market this year and conduct multi category business.

The problem is that women's clothes are complicated and different styles.

Compared to men's clothing, women's life cycle is shorter, turnover speed is faster, competition is more intense than men's clothing.

How does the women's clothing business go on? Xue Danqing said, Hai Lan's home has a designer team of about 200 people, and will cooperate with other design companies. As an incentive, Hai Lan's home will give the design company 40% gross profit.

"Men's clothing brand"

If it's just promotion, it's understandable.

But if we really want to try it out, the reeducation of consumers is not a short-term task, we need a system, and consumers will buy it. In the near future, the data will tell us the result.

Cheng Weixiong thinks.